Beginning in the fall of 2004, partners in Dallas-based Jenkens & Gilchrist who left the firm also left behind their capital contributions, which in some cases totaled hundreds of thousands of dollars, due to the firm's 'contingent liabilities.'
This article first discusses In re Dana Corp., 351 B.R. 96 (Bankr. S.D.N.Y. 2006)('Dana I'), in which the Southern District of New York bankruptcy court denied a debtor's proposed employee 'incentive' program. The article then highlights the differences between the program proposed in Dana I and the program approved by the Southern District of New York in In re Dana Corp., 2006 WL 3479406 (Bankr. S.D.N.Y. 2006) ('Dana II'). Finally, this article proposes options other than those utilized in the foregoing cases that might be available to bankruptcy practitioners in need of a way to ensure that their clients' top executives do not walk out the door.
An essential part of the Chapter 11 process is constructive dialogue and negotiation among all stakeholders involved in the bankruptcy case with a view toward building a consensus on the terms of a confirmable Chapter 11 plan. The Bankruptcy Code establishes a framework to promote such interaction by providing for the appointment of official committees of creditors and shareholders entrusted by statute with the duty to participate in the formulation of such a plan.
Who's doing what; who's moving where.
Recent rulings of interest to you and your practice.
What happens when the U.S. Supreme Court hands you a loss? As anyone can tell you, this usually signals the end of the road, and defeat must be admitted. Not cowed by such a setback, however, is a Colorado woman on a mission to prevent from happening to anyone else what happened to her when law enforcement authorities refused to protect her children from their murderous father. Although she lost her bid to hold the city of Castle Rock, CO, liable for negligence under U.S. law, she has now gone to an international tribunal.
In late January, Simpson Thacher & Bartlett LLP announced that it was hiking its first-year associate pay to $160,000. Since then, the legal press has noted that an increasing number of firms in every major legal market plan to follow suit.
Other than holding that courts cannot use race as a criterion for decision (Palmore v. Sidoti, the U.S. Supreme Court has not delved deeply into defining the constitutional rights of divorcing parents in the context of a custody dispute. In Shepp v. Shepp, however, the Pennsylvania Supreme Court recently held that a divorced parent had a constitutional right to advocate his sincere religious belief in polygamy to his 9-year-old child.
With profits per partner continuing to rise, many attorneys have more discretionary income available for investment. In addition to investing directly in both traditional and nontraditional sources, some partners may choose to invest (either inside or outside their law firms) in opportunities that arise in the law firm setting.
Aside from the many important and critical issues involving children and family, the valuation of a closely held business or professional practice may be one of the most significant issues a practitioner will face when resolving the financial aspects of matrimonial matters. In that regard, one of the most important aspects that the valuator is confronted with is the establishment of a reasonable level of replacement compensation to assign to the owner in the valuation of an ownership interest.
